Labour tax rules will have UK’s super wealthy ‘abandoning the country’ | Personal Finance | Finance

Nigel Green, CEO of deVere Group, has warned: “Labour, which is looking likely to win a landslide victory, has signalled that they will roll out further restrictions on the non-dom regime.

​“This is fuelling enquiries from high-net-worth individuals who are actively considering leaving the UK for a more tax-friendly jurisdiction and who are, therefore, seeking cross-border financial advice.

​“There are many locations all over the world which are crafted to appeal to affluent individuals, typically using straightforward planning strategies. These wealthy people are internationally mobile, many already own a second home abroad, so what’s to keep them in Britain?

“The most popular alternative, lower-tax destinations include Spain, Italy, Switzerland, Malta, Dubai and Singapore.”

Labour has also put forward plans to reduce transitional relief by removing the rule that would see non-doms pay just 50 percent tax on income from abroad in the first year.

Another proposal could seen non-UK assets no longer protected from inheritance tax.

Mr Green added: “The expected departure of high-net-worth individuals could result in a reduction of tax revenues, impacting public services and infrastructure development.

​“Furthermore, the UK has long benefited from the economic contributions of non-doms, whose direct and indirect investments and business activities have been integral to the nation’s prosperity.

​“Additionally, the potential decline in the UK’s reputation as a tax-friendly hub may dissuade future investors and entrepreneurs from considering the country as their base of operations.

​“The allure of the non-dom tax status has been a pivotal factor in attracting international talent and creating a dynamic business environment.

“Its removal could signal a shift in the global perception of the UK as a favourable destination for wealth creation and business development.

​”The very real possibility of Labour winning the UK election is driving high-net-worth individuals to prepare to leave Britain.”